Official press release or financial report from CVS Health

CVS Replaces CEO Karen Lynch with David Joyner, Lowers Earnings Forecast, Withdraws 2024 Guidance

Oct 18, 2024, 11:38 AM

CVS Health has appointed David Joyner as its new President and Chief Executive Officer, succeeding Karen Lynch, who stepped down after an agreement with the board. The leadership change comes as the company struggles to drive higher profits and stock performance. CVS issued a profit warning, expecting preliminary third-quarter adjusted earnings per share (EPS) between $1.05 and $1.10, significantly below analysts' estimates of $1.70. The company also reported a higher medical loss ratio of 95%, exceeding expectations of 91%, and withdrew its most recent 2024 guidance issued in August. In response, CVS shares tumbled over 13% in pre-market trading.